Assume a 30-month cd purchased for $3000 pays simple interest at an annual rate of 5.5%. how much total interest does it earn? what is the balance at maturity?

Question

asked Feb 20, 2017 5.3k views

1 Answer

Akrun · Answer 1 · 2017-02-26T07:34:19+0000

It will earn 0.55 x 4000 = ? annually.
? x 2.5 years = total interest earned.
4000 + interest earned = balance at maturity.